Impact of flour price rise discussed at key meeting in Bahrain

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Legislators have called on the government to defer an impending rise in the prices of flour and related products for three months.

The proposal is being spearheaded by National Assembly and Parliament Speaker Ahmed Al Musallam to end a deadlock between the legislative and executive authorities over the issue.

Bahrain Flour Mills Company had recently announced its decision to increase the prices of flour and related products by 35 per cent to 100pc, prompting MPs to call for an urgent meeting to discuss the move.

Mr Musallam believes the deferral would give time for authorities to conduct further studies and seek appropriate solutions or alternatives without harming citizens’ interests.

The proposal was tabled yesterday during a joint meeting between Parliament and the Shura Council and a Cabinet delegation to discuss the impact of the hike on Bahraini families, livestock breeders and traders.

Mr Al Musallam chaired Parliament’s delegation, Shura Council team was headed by Chairman Ali Saleh Al Saleh and Parliament and Shura Council Affairs Minister Ghanim Al Buainain led the Cabinet’s delegation.

The meeting was also attended by Transportation and Telecommunications Minister Mohammed Al Kaabi, who is politically responsible for Bahrain’s sovereign wealth fund – Bahrain Mumtalakat Holding Company, company board chairman Basim Al Saie, senior government officials, and members of public utilities and environment affairs committees’ in both legislative chambers.

Mr Al Musallam pointed out that food security was a major priority in national and parliamentary work. He praised the government’s efforts in implementing the National Food Security Strategy and highlighted the establishment of the Bahrain Food Holding Company to promote growth and innovation in the food and agricultural sector.

He pointed out government’s role in diversifying supply chains, encouraging the private sector to increase its contribution to food security projects, attracting foreign investments in multiple fields of production, providing materials and commodities to Bahraini citizens, and supporting workers in the food field.

“Parliament has followed with great interest the decision of the Bahrain Flour Mills Company to raise the prices of its products, its effects on Bahraini families, repercussions on livestock breeders and traders, and other food commodities,” said Mr Al Musallam.

“We have tabled a proposal to postpone the hike for a period of three months. The proposal would give all concerned the chance to conduct further study and search for appropriate solutions and alternatives without compromising citizens’ gains or harming their interests.”

The government delegation, meanwhile, stressed Bahrain’s keenness to continue adopting plans and programmes to enhance food security, in addition to providing all means of support to the private sector to contribute to the sustainability of food security projects.

The delegation noted that the interest of the citizen was top priority, and joint efforts and co-ordination between the executive and legislative authorities would continue to achieve the aspirations of the people.

“The citizen will not be affected as the prices of subsidised products will remain the same, including the main flour products used in traditional bakeries,” the government delegation said.

Mr Al Buainain pointed out that price adjustments being made were for subsidised flour products that were not subject to supervision.

He said the hike was necessary owing to several factors, the most important of which was the rise in global wheat prices. “Despite this, they are still heavily subsidised and our prices are among the lowest in the region,” he added.

The government delegation said Bahrain Flour Mills Company was fully committed to maintaining business viability and adjusting prices was necessary to ensure its long-term sustainability.

“The government will study the parliamentary proposal to postpone the implementation of the decision for a period of three months,” Mr Al Buainain said.

Mr Al Saleh explained that the National Strategy for Food Security (2020-2030) constituted a roadmap to enhance investment in the livestock and agricultural sector, and open the way for innovation and creativity in applying the latest practices.

“The Bahrain Flour Mills Company’s intention to amend the prices of its products must be taken into account so that citizens are not affected by any scheduled increase, especially with regard to the prices of bread or the daily loaf, and the main flour products used in traditional bakeries,” said Mr Al Saleh.

The company chairman said although the recent price rise may seem significant, it was still one of the lowest in the region.

The company completed a major expansion of its production capacity in March.

However, the increased capacity has also led to higher consumption costs, which are now impacting the company’s operational performance.

MPs had earlier threatened to grill Industry and Commerce Minister Abdulla bin Adel Fakhro over the proposed price rise.

Sources told the GDN that several MPs opposed Mr Al Musallam’s proposal and demanded full suspension of the increase.

However, the government has found the proposal to be ‘a reasonable solution’, they added.